EXPLANATORY STATEMENT
Social Security (Exempt Lump Sum – Retta Dixon Home Settlement Payment) Determination 2017
Summary
Under the social security law all income earned, derived or received for a person’s own use or benefit, is counted as income. The only exceptions are items specifically exempted under the social security law. Paragraph 8(11)(d) of the Social Security Act 1991 (the Act) allows the Secretary of the Department of Social Services (DSS) to determine that an amount or class of amounts received by a person is an exempt lump sum for the purposes of the Act. An exempt lump sum is not included in the definition of ‘ordinary income’ under subsection 8(1) of the Act, so any such amount would not be taken into account under the social security income test.
This Determination provides that a Retta Dixon Home Settlement Payment is an exempt lump sum for the purpose of paragraph 8(11)(d) of the Act.
Retta Dixon Home Settlement Payment means a payment made from the Deed of Settlement between John Gordon and other claimants, the Commonwealth of Australia, Donald Bruce Henderson and Australian Indigenous Ministries Pty Ltd (ACN 002 013 658), document number 21254502, first signed 8 March 2017.
The effect of this Determination is that such a payment will not be regarded as income under the Act, so that if a social security recipient receives such a payment, it will be exempt from the social security income test.
Commencement
The Determination commences the day after this instrument is registered on the Federal Register of Legislation.
Consultation
Consultation was undertaken with the Department of Prime Minister and Cabinet. Consultation was also undertaken with the Department of Veterans’ Affairs, Department of Agriculture and Water Resources and the Department of Human Services.
This determination will be beneficial to persons affected as it exempts Retta Dixon Home Settlement Payments from being assessed as income for social security purposes. As a result, public consultation was considered unnecessary.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement. The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.
Explanation of Provisions
Section 1 of the Determination states the name of the Determination.
Section 2 provides that the Determination commences the day after this instrument is registered on the Federal Register of Legislation.
Section 3 provides that the authority for making this Determination is paragraph 8(11)(d) of the Social Security Act 1991.
Section 4 contains definitions of certain terms used in the Determination, including the definition of Retta Dixon Home Settlement Payment. This is defined as a payment made from the Deed of Settlement between John Gordon and other claimants, the Commonwealth of Australia, Donald Bruce Henderson and Australian Indigenous Ministries Pty Ltd (ACN 002 013 658), document number 21254502, first signed 8 March 2017.
Section 5 specifies that a payment made to a person as a Retta Dixon Home Settlement Payment, is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Social Security Act 1991. Such an amount will be regarded as an exempt lump sum from the date the payment is received by the person.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Social Security (Exempt Lump Sum –Retta Dixon Home Settlement Payment) Determination 2017
The effect of the Determination is that a person who receives a Retta Dixon Home Settlement Payment will not have that payment assessed as income under the social security law.
A Retta Dixon Home Settlement Payment is a payment made from the Deed of Settlement between John Gordon and other claimants, the Commonwealth of Australia, Donald Bruce Henderson and Australian Indigenous Ministries Pty Ltd (ACN 002 013 658), document number 21254502, first signed 8 March 2017.
Human rights implications
This Determination is made under Section 8(11) of the Social Security Act 1991 (the Act) and determines that a Retta Dixon Home Settlement Payment is an exempt lump sum and will therefore not be assessed under the social security income test for the purposes of the Act.
The Determination ensures that people receiving a Retta Dixon Home Settlement Payment will not have these payments assessed as income for social security purposes.
The Determination engages the right to social security.
The right to social security
The Determination will operate beneficially, as a Retta Dixon Home Settlement Payment will not be taken into account when assessing a person’s eligibility for, or rate of social security entitlements under the social security income test. If the Retta Dixon Home Settlement Payment was not exempted, a person in receipt of a Retta Dixon Home Settlement Payment may not be eligible for a social security payment or, if they are eligible, their rate of payment might be reduced. The Determination is therefore consistent with the promotion of the right to social security.
The exemption of the payment of a Retta Dixon Home Settlement Payment from the income test on receipt does not alter the fact that any ongoing income generated by the lump sum is counted under the income test, and any assessable asset produced from the lump sum is counted under the social security assets test. This is consistent with the treatment of other lump sum payments exempted under paragraph 8(11)(d) of the Act.
Conclusion
This Determination supports a person’s human right to social security.
Anita Davis, Acting Branch Manager, International and Means Test Policy Branch, as a delegate of the Secretary of the Department of Social Services.